Your clients who own or operate hospitality ventures, such as a live music venue or nightclub, need adequate amounts of nightclub insurance, given the potential for liquor and assault and battery claims, which are just the tip of the iceberg.
For example, a customer eats a delicious meal at your client’s place of business; only to hours later suffer a serious reaction to something that they consumed earlier. This is the sort of ordeal that, without proper coverage for products and completed operations coverage, could turn into a business owner’s nightmare.
A claim for food poisoning can often be quite costly, or certainly any number of other completed operations issues could occur. Your client could end up facing serious consequences if they experience any type of coverage gap due to the fact that their hospitality program insurance hasn’t been designed to deal with all of the issues at hand.
Assault and battery & liquor liability concerns top the list
But let’s face it – bars and nightclubs identify assault and battery along with liquor as the two biggest liability concerns this industry regularly deals with. Plus, with the potential for assault and battery charges being so high, these establishments need to beware of general liability policies that may exclude assault and battery, or at least reduces the limits available to a small fraction of the typical $1 million policy. There are insurers issuing a $25,000-to-$300,000 sublimit for this coverage.
They should maximize their coverage for liquor liability that will protect these establishments from claims that they served liquor to a visibly intoxicated person, or to a minor who subsequently caused death or injury to third parties. A claim and subsequent settlement of this kind can easily wind up being a multi-million dollar judgment, and an improperly insured business would be ruined.
In addition to having adequate liquor and general liability coverage and limits, buyers and their brokers should consider an excess or umbrella policy to further enhance coverage. This way, if a judgment does end up exceeding their liability insurance limits, they’ll have the added protection that they need and deserve. Your best move is to discuss all of the nightclub insurance needs of your different clients and come up with the right solution for each individual business model.